H&M reports smaller than expected 50% drop in Q2 sales

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On Monday H&M Group reported that net sales decreased by 50 per cent year on year to £2.45 billion, a smaller drop than expected as coronavirus lockdowns start to ease and stores reopen.
H&M said that 18% of its 5,058 stores remain closed temporarily.
// H&M’s sales in its fiscal second quarter fell 50%, a smaller drop than expected
// Local currency sales in the first 13 days of June were down 30%

H&M Group’s net sales have decreased by 50 per cent year-on-year to £2.5 billion, a smaller drop than expected as coronavirus lockdowns start to ease and stores reopen.

H&M, which began gradually reopening stores around the world in late April after approximately 80 per cent had been shuttered by the pandemic, said that total sales between June 1 and June 13 decreased by 30 per cent in local currencies compared with the same period in 2019.

The retail giant said sales in local currencies also decreased by 50 per cent year-on-year.


READ MORE: 60% drop in H&M sales as lockdown affects business


“The sales development during the second quarter was severely affected by the Covid-19 situation,” H&M said.

Online sales helped partially mitigate the store closures, with reported web sales increasing by 36 per cent and local currency sales by 32 per cent during period.

“The pace of the sales recovery varies at a large extent between markets,” H&M said.

“At present approximately 900 stores, representing around 18 per cent of the group’s 5058 stores, are still temporarily closed.

“Online sales are open in 48 of the company’s 51 online markets.”

H&M is set to publish its full quarterly earnings on June 26.

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